CRISIL projects higher revenue growth of 8%-10% for India’s top 18 States in 2024-25, from a 7.5% growth last fiscal largely aided by a rise in collections from the GST
These States, which include Maharashtra, Gujarat, Tamil Nadu, Kerala, Uttar Pradesh, Telangana, West Bengal and Rajasthan, account for more than 90% of India’s Gross State Domestic Product (GSDP).
GST collections and tax devolutions from the Centre constitute about 50% of aggregate State revenues
The biggest impetus to revenue growth will continue to come from aggregate State GST collections that, after growing approximately 18% last fiscal, will climb 13%-14% in the current fiscal
Taxes on liquor, which account for 10% of revenue, were estimated to rise 5%-7% from 5.8% growth last year.
Sales tax collections from petroleum products, which constitute 7%-8% of States’ revenue, were projected to grow 3%-4%, compared with a 1.4% rise in FY24
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